Gulf stocks rise on higher oil prices as OPEC+ expected to cap output

Major Gulf stock markets traded higher early on Monday amid rising oil prices, with Dubai outperforming the region in a boost led by property and banking stocks.

Oil rose on Monday on expectations the Organization of the Petroleum Exporting Countries (OPEC) and allied producers may opt at a meeting on Monday to cap output at current levels in February, due to demand worries linked to the COVID-19 pandemic.

The Dubai index was up 1.1%, extending the previous session's gains. Blue-chip developer Emaar Properties led the rise in real estate shares, increasing 1.7%, and Dubai Islamic Bank added 1.1%.

In Abu Dhabi, the index gained 0.4%, supported by First Abu Dhabi Bank and telecoms major Etisalat rising 0.5% and 0.7% respectively.

Saudi Arabia's benchmark index was up 0.5%, supported by petrochemical and banking shares.

Al Rajhi Bank gained 0.6%, while Saudi Kayan Petrochemical surged 6.9% to end a five-session losing streak with its sharpest intra-day rise since March 2020.

The chemical maker said the Ministry of Energy had approved its request to lift ethane allocation by a maximum of 30 million standard cubic feet per day (MMSCFD), based on the availability of ethane from future gas production projects.

The Qatari index was up 0.1% as Industries Qatar advanced 1.2%, while the Gulf's largest lender Qatar National Bank gained 0.7%.

A Gulf Cooperation Council (GCC) summit will be held on Jan. 5 to discuss steps towards ending a diplomatic row with Qatar that began in 2017 when Saudi Arabia, the United Arab Emirates and Bahrain severed diplomatic ties with the country.